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Loans

Unlike Grants and Work-Study, Student Loans are borrowed money that must be repaid, with interest. As loans are a legal responsibility, it is important to look at them as a last resource to pay for your education.

Aims Community College participates in the William D. Ford Direct Loan Program, also known as “Direct Loans”. Eligible students and parents borrow directly from the U.S. Department of Education. Direct Loans include:

In addition to interest, there are fees associated with these loans. Loans borrowed after December 1, 2013;

Subsidized and Unsubsidized Stafford loans have an origination fee of up to 1.072% of the loan amount borrowed

PLUS loans have an origination fee of 4.288% of the loan amount borrowed

The fee will be deducted proportionally from each payment of the loan to the school. This means the amount paid to school will be slightly less than the amount you have borrowed and must repay.

Information regarding the federal student loans you borrow is reported to the National Student Loan Data System (NSLDS) and is viewable by authorized users of that system (i.e. lenders, guarantee agencies and schools). As a federal student loan borrower, you can view the same information by using your U.S. Department of Education issued PIN, your name, your social security number and your date of birth at the NSLDS for Students website.

Federal Student Loan Limits (Academic Year and Cumulative)

As a 2-year community college, loan limits can only be certified at 1st and 2nd academic year levels.

School Year

Dependent Undergraduate

Independent Undergraduate

1st year
(0-29.5 credits)

$5,500*

$9,500*

2nd year
(30+ credits)

$6,500*

$10,500*

*Annual Limit

Repayment of Your Federal Student Loans

The repayment of your federal student loans will be determined based upon the U.S. Department of Education’s Standard Repayment plan;

minimum payment of $50 per month, per loan for up to 10 years.

The Direct Loan Program offers other loan repayment plans that can found on the Direct Loan website.

Subsidized Stafford Loans:

The student must show financial need, as determined by the Financial Aid Office, and be enrolled at least half-time to receive a Subsidized Stafford Loan. The U.S. Department of Education will pay the interest that accrues on this loan type during periods of half-time enrollment, and periods of deferment. Once the loan goes into repayment, the borrower is then responsible for the payment of the loan’s principal and interest.

Unsubsidized Stafford Loan:

Financial need, as determined by the Financial Aid Office, is not required for the Unsubsidized Stafford Loan. However, the student must be enrolled at least half-time. The borrower (student) is responsible for the payment of the interest, in addition to the amount borrowed, from the times the loan is paid on his/her behalf until it is paid in full.

Accrued interest not paid during deferment or forbearance will be added to the loan amount borrowed and interest will be charged on the combined amounts. This is known as interest capitalization.

The Financial Aid Office at Aims Community College strongly recommends paying the interest on your Unsubsidized Stafford Loan monthly or quarterly to reduce the amount of interest charged to your loan.

PLUS Loan:

Parents of Dependent students can borrow from this loan program to help pay the cost of their student’s undergraduate education. This loan is credit based. A FAFSA must be filed for students whose parents would like to borrow through the PLUS Loan program. In addition, the parent must complete a Parent PLUS application on the Student Loan website.

Private Educational Loans:

There are a number of private loans which are available to credit-worthy students and/or their co-borrowers. Students should first determine their eligibility under the federal student loan programs before seeking additional funding under this option. To apply for a private loan you must contact the lender of your choice. Information on the eligibility criteria and loan terms are available on each lender's website.

Preferred Lender List

Aims Community College does not have a preferred lender list (PLL) for alternative loans and, therefore, will not require a prospective borrower to use a lender on a PLL, deny or otherwise impede a borrower’s choice of lender OR cause delays for borrowers who use a lender that is not listed on a PLL.